A real estate market that is even somewhat comparable to the one we are seeing right now has not been seen by any of us in recent memory, if ever! After working as a real estate licensed salesperson in the state of New York for more than 15 years, I have come to the conclusion that the housing market will probably always remain cyclical; nevertheless, at some time in the future, this too will change! This article will make an attempt to, in a brief manner, consider, examine, review, and discuss 5 distinct possibilities, along with why/how they have contributed to, these circumstances, etc. In spite of the fact that there are a number of factors/reasons/considerations regarding, why we are experiencing, this performance, etc., this piece will attempt to do so.
sentiments and cravings that have been repressed since the pandemic:
The pandemic is something that this country and the rest of the world has been dealing with for about a year and a half now, and the emotional impacts of the public health restrictions and limitations on many aspects of our lives have probably resulted in a significant amount of pent-up, post-pandemic feelings and needs! After having the experience of being confined in their previous houses, many people came to the realization that there were many parts of their housing situation that they want to alter, such as the style of their homes, their locations, etc.
A mortgage interest rate that is at a historic low:
It is difficult to think of a moment in recent history when mortgage interest rates were at such an all-time low level as they are now! Because interest rates have been very stable over the last several years, staying around 3%, prospective homebuyers are in a position where they can afford to purchase homes that are far more costly. Every point makes a substantial difference in an individual’s monthly payment, which is why there is a large shift when rates are as low as they are now! The Federal Reserve Bank has, for some time, maintained interest rates at artificially low levels, and mortgage expenses, etc., have followed this direction and activities! In spite of this, rates will very probably go up at some time in the future since there is a clear indication that inflation is taking place in practically everything we purchase. What kind of effects will this have on the price of real estate, when exactly this will occur, etc.?
Increased feelings of employment confidence as well as increased customer confidence:
According to recent polls, there is now a better level of consumer and job confidence in the general people than there has been in quite some time! When individuals have a greater sense of financial ease, it often results in the emergence of a seller’s market. This is due to the increased number of qualified prospective buyers who are browsing, buying, and the like.
The Interplay of Supply and Demand
The economic rules of supply and demand hold true in many other sectors of the economy, and they definitely hold true in regards to the price of homes! Prices go higher if there is a greater demand than there is supply, and while the converse is true, purchasers are in a position of strategic advantage! At this time, there is a lack of available inventory!
- For how much longer will this continue? It is often a waste of effort to attempt to market-time the housing or real estate market! No one can say with absolute certainty when the current tendencies and performance will start to shift, nor can they predict the total influence that this will have on linked demand and, therefore, price!
When a consumer has more information and comprehension, he is in a better position to make the choice that is right for him. The more thoroughly one prepares, the greater the likelihood that they will choose the optimal options.